Accounting Practice MCQ Page 32
Multiple Choice questions for Accounting in the sets of 10 each on one page with questions and answers. All sets are useful in the preparation of subject tests for employment or admission.
Question: 2163 Alto palo company has temporary unused production capacity. the idle plant facilities can be used to manufacture a low margin item. the low margin item should be produced, if it can sold for more then its
- fixed costs
- variable costs
- prime costs
- indirect costs
Question: 2164 Cost-volume-profit analysis is most important for the determination of the
- volume of operations necessary to break even
- variable revenues necessary to equal fixed costs
- relationship between revenues and costs at various level of operations
- sales revenue necessary to equal fixed costs
Question: 2165 if net profit is 10% and p/v ratio is 50%, the margin of safety will be
- 10%
- 20%
- 50%
- margin of safety cannot be computed
Question: 2166 The alternative that would decrease the contribution margin per unit t he most is a 20%
- decrease in selling price
- increase in selling price
- increase in variable costs
- decrease in variable cost
Question: 2167 when referring to margin of safety, one has the following in mind
- the excess of budgeted or actual sales overfixed costs
- the excess of actual sales over break-even sales
- the excess of actual sales over budgeted sales
- the excess of sales revenue over variable cost
Question: 2168 The conventional break-even analysis does not assume that
- selling price per unit will remain fixed
- total fixed costs remain the same
- variable cost per unit will vary
- productivity per worker will remair unchanged
Question: 2169 if fixed costs decrease while variable cost per unit remain constant,the new break-even point on relation to the old break-even point will be
- indeterminate
- unchanged
- higher
- lower
Question: 2170 if fixed costs decrease while the variable cost per unit remain constant, the new contribution margin in relation to old contribution margin will be
- indeterminate
- unchanged
- higher
- lower
Question: 2171 when margin of safety is 20% and contribution sales ratio is 60% the profit will be
- 30%
- 33% 1/3%
- 12%
- cannot be computed
Question: 2172 when fixed cost is RS. 20,000 and margin of safety is RS.10,000, the p/v ratio will be
- 200%
- 50%
- 33%
- cannot be computed
Question: 2173 when sales jumped form RS. 4,00,000 and profit increased by Rs. 40,000, the p/v ratio is
- 7.5%
- 10%
- 40%
- cannot be computed
Question: 2174 when total fixed cost is RS. 50,000 and variable cost to sales is 75%, the break-even point id
- RS. 37,500
- RS. 12,500
- RS. 2,00,000
- cannot be determined
Answers to the questions of Accounting on this page
Following list gives the correct choice for the answer of the Accounting mcqs.
2163 . B
2164 . C
2165 . B
2166 . A
2167 . B
2168 . C
2169 . D
2170 . B
2171 . C
2172 . D
2173 . C
2174 . C
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